This is the most vital part of the documentary package, as it is the proof that the Exporter is owed a specific sum of money on a specified date.
Wherever possible, Exporters should secure negotiable instruments, which are unconditional, irrevocable and freely transferable, such as promissory notes or bills of exchange, as evidence of the debt. Also, because these instruments are sold without recourse, the Exporter who sells them can effectively remove himself from any further involvement with the financial aspects of the transaction, including the risk as well as the administration and collection.
The instruments should include certain key elements, such as the words "for value received", place and date of Issue, amount due in both words and figures, the specific maturity date, an effective payment clause, a without deduction clause, and a domicile for payment.
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